Secondary / Basement Suite Incentive Program

As part of the Provincial Government’s continued efforts to support the creation and availability of more affordable housing in Newfoundland and Labrador, applications for the Secondary and Basement Suite Incentive Program are now open.

This program will allow homeowners to access a forgivable loan of 50 per cent of the cost of renovations, up to a maximum of $40,000, to create a new, self-contained secondary or basement suite within their home.

Program Overview

The Secondary and Basement Suite Incentive Program aims to grow the availability of affordable housing options throughout Newfoundland and Labrador. The program will provide funding to help homeowners create a new, self-contained secondary or basement suite within their home that is to be rented at below market rates.

Homeowners who qualify will receive up to 50 per cent of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan, which does not need to be repaid if the homeowner follows the terms of the program.

For the loan to be forgiven, the new unit must be located on the same property where the homeowner lives and must be rented out at below market rates, as established by Newfoundland and Labrador Housing Corporation (NLHC), for at least five years.

Who is eligible?

Applicant:

• Current homeowners who reside in the home as their primary residence
• Canadian citizens or permanent residents

Property:

• Must meet health and life-safety standards

Basement Suite:

• The new unit must be registered (where applicable), self-contained and provide living, sleeping, eating, food preparation and sanitary facilities for the exclusive use of the household occupying the unit
• Received municipal building permit after January 1, 2024

Renter:

• Cannot be a sibling or child of the homeowner/applicant, but may be a parent or parents aged 65 or older
• Must have a household income below $42,000

What do I need to apply?

• Completed application form
• Proof of residency in the home to be modified (e.g., driver’s license, utility bill)
• Proof of home ownership for the home to be modified (deed and survey)
• Approved Building Permit from your municipality (where applicable)
• Confirmation of assets or financing in place for the balance of funds required to complete renovations
• A contractor quote to complete the secondary or basement suite.

What costs are eligible?

• Architectural and design fees
• Inspection fees (where applicable)
• Structural modification
• Electrical work
• Fixtures
• Appliances (50% of actual cost to a maximum of $2,500)
• Building and trade permit fees
• Costs to obtain certificates, drawings and specifications directly related to eligible scope of work
• Materials related to the approved construction
• Contractor labour (not including work done by Applicant or any member of the Household)
• HST

What costs are not eligible?

• Repair of existing rental units
• Labour costs for work completed by the homeowner
• Landscaping costs